Committees : Governance

When Recruiting Directors, Keep the Big Picture in Mind

One of the most challenging aspects of maintaining a strong board is finding strong directors to serve. Most smaller banks handle this process themselves—often with uneven results—while larger banks are more likely to use the services of a search firm when they need to add or replace a director. The process should be driven by the independent directors on the board’s governance or nomination committee, and in fact, this is a listing requirement for publically traded banks that are traded on the Nasdaq or the New York Stock Exchange. At some smaller, privately held banks, the CEO still recruits new...